Half Year Report to 31 December 2020

The Directors are pleased to submit to shareholders their interim report and financial statements for the six month period ended 31 December 2020. Revenue $7.447m (September 2019 $3.718m) Net Profit $0.603m (September 2019 $0.208m) Cash $2.493m (September 2019 $0.853m) Borrowings $0.174m (September 2019 $0.470m) Enprise subscribed $0.335m on 22 October 2020 in an oversubscribed rights issue undertaken by Datagate to enable Datagate to continue expansion into international markets. Enprise's stake in Datagate was diluted by this raising causing Enprise to recognise a gain on dilution of $0.224m. If Enprise Group's 2,010,397 shares in Datagate with an unaudited carrying value of $0.951m were valued at the October 2020 rights issue price of $2.20 per share, the value of the investment would be $4.423m. Enprise invested AUD 0.547m acquiring shares from existing shareholders in iSell at 30 cents AUD per share on 31 December 2020. The acquisition of these shares increased Enprise Group's share of iSell to 67.6%. The combination of Enprise Australia, Enprise Solutions and Kilimanjaro Consulting into a single operation as Enterprise Solutions was completed. The division is operating well under the single management team and the group is benefiting from the efficiencies created in spite of lower than budgeted revenues. Enprise changed its main banker from ASB Bank to BNZ from December 2020. The BNZ facilities are an overdraft of $1m and a line of credit of an additional $2m. Enprise is not currently using either of these facilities, however they exist so that Enprise can take advantage of any opportunities. Enprise Group achieved the number three spot in the Absolute IT Supreme Scale-Up awards due to its 85% revenue growth. Enprise Group's revenue was $5.7 million higher for 2020, to $12.4 million. The results were announced at the Tech Pulse 2020 virtual, interactive launch event. The Absolute IT Supreme Scale-Ups 2019 are the Next100 companies (ranked between 101-200 in the TIN200) with the largest revenue growth in the past year. Revenue increased 100.3% from the six month reporting period in September 2019. Revenue is down on expectations however operating profit is performing above expectations due to control of costs and efficiencies created by operating as a combined Enterprise Solutions division. Assistance from the Australian government was $0.756m which has been used to retain and retrain staff on MYOB's new cloud software MYOB Advanced so we can keep pace with the fast adoption of cloud solutions accelerated by Covid-19 and requirements to work from home. The Enterprise Solutions division continues to leverage its position as the only MYOB EXO and MYOB Advanced reseller with offices in both New Zealand and Australia, to target trans-Tasman businesses. The division is well positioned to take advantage of the trend towards cloud while still having a stable, well supported, secure and continually developed on-premises offering. The division has Platinum Partner status with MYOB in New Zealand and has Diamond Partner status with MYOB in Australia. iSell had 253 customers on the new SaaS cloud software platform as at 31 December 2020. iSell is in the process of adding new customers to the cloud platform and converting the legacy on premises customers to the new software. There are 40 customers remaining to migrate of which 10 are currently in progress. The beachhead established during 2020 in Europe has been successful with 37 paying customers in that geographic region. iSell has signed a significant reseller in the UK and is expecting to expand the reseller model into new geographies. Datagate had 122 paying customers at 31 December 2020 representing annualised recurring revenue of $1.255m, an increase of 49.8% in the last 12 months. Datagate is focused on selling and on-boarding new customers particularly in North America. We remain confident in the future success of the Datagate business. Our investee company, Vadacom, processed a share buyback on 22 December 2020. Enprise received $0.062m in cash during January 2021. End CA:00368056 For:ENS Type:INTERIM Time:2021-02-23 17:20:48